Vietnam plans to deepen its involvement in the worldwide semiconductor supply chain.
In the rapidly evolving world of technology, Vietnam is making a significant mark in the semiconductor industry. The country's strategic approach, centred around attracting foreign investment, enhancing university education, and strengthening technological partnerships, is yielding promising results.
Last year, a notable increase of nearly 42,000 students chose STEM majors as their first choice, with computer science and IT drawing more than 54,000 applicants and AI seeing a major surge with 2,754 first-choice applications.
This upward trend is a testament to the government's efforts to invest heavily in education and training to build a semiconductor-skilled workforce. The aim is to train at least 50,000 semiconductor engineers by 2030.
Vietnam has already attracted about 170 foreign direct investment (FDI) projects in semiconductors and high-tech industries, totalling nearly USD 11.6 billion. The government facilitates investment by providing tax incentives, duty-free import of machinery and inputs for semiconductor manufacturing, and streamlined customs procedures specifically benefiting chip testing, packaging, and production operations.
The country is also actively promoting technology transfer, joint R&D, and global cooperation to build a competitive semiconductor ecosystem. It collaborates with foreign expert groups to finalise national development strategies and accelerate innovation via new R&D labs, standardised cleanrooms, and centralised tech zones, supporting integration into the global semiconductor supply chain at higher value-added stages.
Prime Minister Phạm Minh Chính has set a clear goal that by 2027, Vietnam must be able to design, manufacture, and test key semiconductor chips. Around 15 firms in Vietnam are involved in chip packaging, testing, and equipment manufacturing, with a workforce of approximately 6,600 engineers and over 10,000 technicians.
The global semiconductor industry is expected to grow by around 20% in 2024 and 12% in 2025, with a total market value of approximately US$700 billion. Major technology corporations like Nvidia and Qualcomm have selected Vietnam as a strategic hub for AI and chip R&D.
Vietnam currently hosts over 50 chip design companies employing around 7,000 engineers. The surge in the semiconductor industry is driven by rising demand in areas such as artificial intelligence, data centres, electric vehicles, and 5G technology.
The Vietnamese government has introduced policies to accelerate domestic industry development, including resolutions, the Digital Technology Industry Law, and the Science, Technology and Innovation Law. The Ministry of Education and Training has issued detailed guidelines for universities and colleges to implement the Prime Minister's directives regarding semiconductor education.
The Centralised Information Technology Zone in Đà Nẵng Software Park 2 provides workspace for start-ups in the semiconductor and AI sectors. The Ministry of Finance is being urged to expedite approval for nine laboratory projects submitted in late 2024.
The Ministry of Education and Training also advocates greater coordination among domestic universities to avoid duplication of effort and to form a cohesive national training ecosystem. Viettel, a major Vietnamese telecommunications company, is set to launch Vietnam's first chip production facility.
Vietnam has been chosen as a host for one of the world's leading semiconductor exhibitions. Nine higher education institutions have proposed to establish semiconductor laboratories, which are currently under review by the Ministry of Finance.
In conclusion, Vietnam's integrated strategy, focusing on attracting foreign investment, investing in education and training, and fostering international technological partnerships, aims to make the country a key player in the global semiconductor industry by 2030. With the support of the government and the commitment of major tech corporations, Vietnam is well on its way to achieving this ambitious goal.
- The government's strategic approach, focusing on education, foreign investment, and technological partnerships, signals Vietnam's significant advancement in the semiconductor industry.
- The growth of Vietnam's semiconductor industry is reflected in the increasing number of students choosing STEM majors, especially computer science and AI.
- To further solidify its position in the semiconductor market, Vietnam is offering tax incentives and duty-free imports to attract foreign investment in semiconductor manufacturing.
- Vietnam's vision is to be able to design, manufacture, and test key semiconductor chips by 2027, with around 15 firms already involved in packaging, testing, and equipment manufacturing.
- The global semiconductor industry's growth, projected to surpass $700 billion by 2025, has major tech corporations like Nvidia and Qualcomm choosing Vietnam as a strategic hub for AI and chip R&D.
- To support integration into the global semiconductor supply chain, Vietnam is collaborating with foreign expert groups and establishing new R&D labs, standardised cleanrooms, and centralised tech zones.
- The Centralised Information Technology Zone in Đà Naṅg Software Park 2 offers workspace for start-ups in the semiconductor and AI sectors, while the Ministry of Finance is reviewing proposals for nine laboratory projects.
- To form a cohesive national training ecosystem, the Ministry of Education and Training advocates greater coordination among domestic universities, while Viettel, a major Vietnamese telecommunications company, plans to launch Vietnam's first chip production facility.
- Vietnam's integrated strategy, driven by policy changes, investment in education, and international partnerships, aims to establish the country as a key player in the global semiconductor industry by 2030, with support from the government and major tech corporations.
